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Karma is UP. She's a lot of fun, and tricky to learn to play, but the basic problem she has is that she only has 2 real skills, when it comes to a teamfight. In normals she can be a lot of fun, but competetively, she just isn't viable, primarily because she doesn't fit into the meta at all.
She's been out for over a year, and her win rate % is the 2nd lowest in the game. People have had time to figure her out- and they've figured out that she needs reworking. Riot has agreed, and the rework is in progress.